Detailed Answer
In Florida, “surplus proceeds” refer to funds remaining after a foreclosure or tax deed sale of real property when the sale price exceeds the debt and costs. When the property title stood solely in a spouse’s name at death, no joint-tenancy right of survivorship applies. The surplus passes under Florida’s intestate succession law, unless the decedent left a valid will.
1. Identification of Heirs under Intestate Succession
• Surviving Spouse: If the decedent was married at death, the spouse may inherit the entire surplus if no descendants exist or, in some cases, share with descendants. Florida Statutes § 732.102 outlines these rules. Fla. Stat. § 732.102
• Descendants: If the decedent left lineal descendants (children, grandchildren), the spouse shares with them. For example, when the decedent had one child, the spouse receives half and the child half. With two or more children, the spouse also receives half, and the children split the other half equally.
2. Petitioning for Surplus Funds
After a foreclosure or tax deed sale, surplus funds deposit in the court’s registry. Interested parties must file a petition under Florida Statutes § 45.031 within 60 days after the clerk mails notice of sale. The court holds a hearing and issues an order disbursing funds to eligible heirs. Fla. Stat. § 45.031
3. Impact of a Will
If the decedent left a valid will, surplus proceeds pass according to the will’s terms, subject to homestead and elective-share rights for the spouse. A surviving spouse may elect against the will to receive a statutory share.
4. Homestead Considerations
Florida’s homestead protection does not extend to surplus from a forced sale if the homestead right terminated before or at the time of sale. However, homestead status can affect intestate shares if the property remained the decedent’s homestead at death.
Helpful Hints
- Gather Documents: Obtain the death certificate, probated will (if any), marriage license, and birth certificates for descendants.
- File Early: File your petition for surplus within 60 days of the clerk’s notice to avoid forfeiture.
- Consult Probate Clerk: Check with the county clerk’s office for local filing requirements on surplus petitions.
- Review Family Law: Understand elective-share rights under Fla. Stat. § 732.201–732.215.
- Consider Legal Advice: While this guide educates you, an attorney can help navigate complex intestacy or probate issues.